Boston Beer Company

Comments (0)

Transcript of Boston Beer Company

1800's Louis Koch LagerBest beer in America - won 4 times Samuel Adams has won more awards in international beer tasting than any other brewery4 vessel brewing processJim personally tastes every batch of beerLargest craft beer - but still less than 1% of total US beer market20% of Domestic Beer Market Some Facts Presentation By:Caleb GilmourAaron BorgDanny Lund Boston Beer Company Organizational Design Spared over 20,000 lbs of hops, to over 100 different microbreweries in 2008 Performance The brewing industry [NAICS 312120] is a recession-proof industryRecession-proof = stable environmentGrowth of Industry in 201113% by volume15% by dollarsEstimated 103,585 jobs in the USCraft brewing sales $8.7 billion1,940 craft breweries operate in the industry Environment 1984 2010 1990's April 1985 Jim Koch brewed first batch of Samuel Adams Boston Lager in his kitchen - 1800 recipe Samuel Adams made it's debut in Boston on Patriot's Day Timeline Road MapJim KochTimelineSome FactsEnvironmentGoals and StrategiesOrganizational DesignPerformanceRecommendationQuestions Overview June 1985 Selected as the "Best Beer in America" by a consumer preference poll at the Great American Beer Festival Continue Quality and TasteLeader in the Craft Brewery IndustryHighly Trained Sales ForceBrand DifferentiationBrand LoyaltyResulting in=Differentiation Competitive Strategy Goals and Strategies Mechanistic Organizational DesignVertical StructureHybrid Matrix Structure: which is focus on each product groupingsInnovative Culture What do we do now? Offers Micro-loans to Disadvantaged small Companies in need Were not just doing well... But how well? Hold 20% of the U.S. Domestic Beer Market In a 2009 Study, Sam Adams carried 2 of the 5 top rated Craft beers in the U.S. Boston Beer has no short or long term debt, and they finance all their own expenditures Initial public offering at $20 p/s, currently steady around $100 p/s Consistantly improving revenue growth % (Samuel Adams) The Industry is Increasingly Competitive Low Barriers to entry Low Switching Cost Innovation! Cognac Port Wine "Each of our specialty beers was an experiment in how to take a flavor profile and go past normal expectations. That endless curiosity drove us to create beers like Samuel Adams® Imperial Pilsner with 75 times the hops of a normal beer. For each of these beers the flavor experience is not only new and different but tastes great too." Conclusion Questions? Overall beer sales were down 1.3% by volume in 2011.Craft brewing accounts for about 5.7% of total beer sales in the US.So overall beer sales are down, but craft brew's sales are up. Compared to Beer Industry Jim KochCo-founder/Chairman of Boston Beer CompanyFocus on Innovation/Quality Meet Jim Niche MarketHighly Trained Sales ForceBrand Differentiation#1 Craft brewer in the USAward winning brews=qualityIndustry moving to craft brews instead of traditional beer Strengths "One of the best things in the world that you can do, is something that your parents think is completely stupid and asinine. Then be really successful at it and have them be proud of you." 1988 Pioneered consumer readable freshness dating - buy back beer after peak freshness date Weaknesses & Threats Weaknesses3 BreweriesLehigh, PACincinnati, OHBoston, MA ThreatsA lot of existing competitionThreat of New entry Pioneered extreme brewing movement Purchased Hudepohl-Schoenling Brewery in hometown Cincinnati, OH Currently have 20% market shareIncrease market shareAdditional breweriesIncrease distribution channelsGlobal Expansion Opportunities Went public, selling shares of class A common stock - hundreds of small breweries emerge 1995 Major renovation & expansion of brewery in Cincinnati Jan 2005 Won More competitions than all other craft beers June 2008 Purchased world class brewery in Lehigh Valley Penn. - 200 employees Infinium - 2 year collaboration between S.A. and Germany's Weihenstephan Largest domestic brewery3rd largest in the "Better Beer" category2009 - 4 of top 8 craft beers3 tier distribution systemBreweryWholesalerRetailerDiversity Twisted Tea31 uniques beersHardcore Cider700 employees Caleb Danny Aaron